Opinion: How Ripple Can Become The Successor To Bitcon

In the last months of 2017, it was simply impossible not to hear about bitcoin. It was clearly the hot topic. Now the story is repeating itself but for ripple. This cryptocurrency, third in terms of capitalization, behind the ethereum, becomes a credible alternative in the eyes of investors.

Why do we talk so much about Ripple? What does Ripple own and what does not Bitcoin have? The sudden celebrity of ripple comes not only from its technology but also because it is the cryptocurrency that has experienced the greatest growth in the year 2017 from less than 1 cent to more than $1.18.

Extremely fast transaction speed

Many see it as the next bitcoin. The transaction speed of ripple token also called XRP is extremely fast, around 1500 transactions per second, and its transaction costs are very low when the Bitcoin network has trouble validating more than 6 transactions per second costing on average about 30 dollars. each. Moreover, the price of bitcoin transactions continues to increase day by day.

Ripple is primarily designed to facilitate cross-border transfers and clearly has many arguments in its favor but is also controversial. Indeed, Ripple is centralized, which makes some say that the ripple represents the anti-cryptocurrency par excellence, in other words contrary to the original philosophy of Bitcoin. This did not prevent investors from betting on the future success of this project.

The use of Ripple would in any case a real revolution when you know that it takes on average two days to transfer money from one country to another. We must therefore note the great optimism of the cryptocurrency market concerning the solutions provided by Ripple. However, it is important to note that the ripple token is not necessary for use of the Ripple network, although it allows, as expressed above, an acceleration of the transaction speed and lower transaction costs.

No less than 75 banking partners

Ripple currently has more than 75 banking partners who do not yet use ripple token (XRP). The latter, however, has seen its value increase greatly. The value of the ripple is therefore for the moment clearly speculative betting on the success of the project. That’s why the announcement of a new partner is always an event expected by the markets.

Ripple has also experienced a meteoric rise because its price seems quite affordable compared to that of bitcoin. However, there are 100 billion of which only 45 are in circulation. In addition, for the next 55 months, Ripple will pour into the market 1 billion chips per month. From an economic point of view this means that the ripple needs 1.8 billion francs to at least maintain its current level and that for the next 55 months.

Concerns about possible hacking

Uncertainties remain as to the structure of Ripple blockchain. Indeed the validation of the transactions is ensured mainly by Ripple who owns most of the nodes of validation. There are legitimate concerns about the security of the Ripple blockchain if these nodes are hacked.

In addition to the current great speculation on the success of the ripple to become the best asset for digital payments, Ripple is also developing a platform of “Smart Contract” (or intelligent contract) named Codius. Thus, this platform will be able, like Ethereum, to house the development of decentralized applications. Ripple is certainly not only competing with Bitcoin, but also Ethereum. A big question remains unresolved. Will the ripple become the first cryptocurrency this year or next year?

Jane is a 25-year-old from Kentucky that loves to share her passion for technology with others. Apart from running her own YouTube Channel (thetech2020), which uploads weekly videos that cover ground-breaking new technology, she spends her time developing enterprise software. She recently spent her summer working at BlackBerry as a software engineer, and will be returning this summer. In regards to academics, Jane studies Electrical Engineering & Computer Science at Guelph University and in her free time, she loves to watch hockey, read, and hang out with friends. To contact Jane, just click here

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